In the 15-page decision, Macdonald wrote that Foulidis did not prove the comments in question made by Ford were directed at him or that they were defamatory.

"His action fails on this basis and must therefore be dismissed," wrote the judge.

In a statement, the mayor says the court’s decision is "welcome."

"I will continue fighting to represent the best interests of Toronto taxpayers at city hall," said Ford. "There is still a lot of work to be done and I will continue to focus on this."

Foulidis sued Ford alleging that the mayor suggested a sole-sourced, untendered, 20-year leasing deal between Foulidis’s company, Tuggs Inc., and the city was corrupt and that it "stinks to high heaven."

Ford made the comments during an editorial meeting with a Toronto newspaper in the middle of a 2010 mayoral campaign bid.

He told the paper he suspected "corruption and skulduggery" in the closeddoors deal, saying: "These in-camera meetings, there’s more corruption and skulduggery going on in there than I’ve ever seen in my life. And if Tuggs isn’t, then I don’t know what is."

Ford testified in court that at the time, he wasn’t suggesting the deal was illegal, just that it didn’t follow the proper tendering process.

"I can’t pinpoint it, but even to this day people still say the deal stinks to high heaven, but it’s hard to pinpoint and prove, but I’m not the only one saying that," he told the newspaper board at the time.

"I’ve never seen a deal like this and it just didn’t add up to me. I still feel that way."

During the trial, Foulidis’s lawyer told the court that Ford’s comments were "opportunist" at a time where the now-mayor was trying to win votes.

He also argued Foulidis’s reputation as a businessman, and the owner of the Boardwalk Pub in the Toronto Beach neighbourhood, was damaged because Ford’s remarks were made without proof.

In the ruling, Macdonald agreed Ford made the comments in question, but a reasonable person would not have linked them to Foulidis instead of the company in general.

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